Sure. If the government can pump the Dow up to 50,000, then much of the demand that's been lost from the housing collapse, will be replaced by demand from stockowners. Stockowners, who have seen their stocks stagnate in price, and only go down in terms of commodities, etc., over the past decade, could start going on shopping sprees again.

High P/E ratios would make starting new businesses and IPO'ing them into the market attractive.

Makes perfect sense. Because of rampant overcapacity, it certainly won't be housing that pulls us out of this recession/depression. Nor will it be bonds. Some sector, some asset class, will eventually emerge with leadership.